Mortgage without job

Thrugelmir

HappyMJ wrote: »

Void periods are typically quite short

Precisely why many business start ups fail. It won't happen to me attitude.

HappyMJ

Thrugelmir wrote: »

Precisely why many business start ups fail. It won't happen to me attitude.

Hedge against it then by having more than 1 property. The OP has equity. A lot of it. 100% equity in fact. The OP can rent out the property if they wish and make a profit straight away. They don't need to mortgage it yet. They can then take out a mortgage based on that income and the income from maintenance and tax credits to purchase a new property. The bank will allow the income in the calculation on another residential mortgage on the house they will be moving into. It may not be enough to buy a dream property but they can get a mortgage.

This is from the nationwide website.....

Clients with Additional Properties

Where your client will own more than one mortgaged property on completion of their new loan with Nationwide the maximum LTV is 85%
For information about products please see our products, loan size and maximum LTV criteria.If your client owns more than one property, we require all addresses and mortgage details.

• • Let properties are treated as self-financing where the rent received is at least 125% of the current mortgage payments.
  • Where let properties are mortgage free a percentage of the total monthly rent received will be treated as income.
  • Rent must have been received for a minimum of one month at the point the application was submitted and we will require up to date bank statements to confirm this.
  • A copy of the signed tenancy agreement is required.

If the property is covered by an accountant's certificate/2 years accounts, no tenancy agreement/bank statements are required and rental income, mortgage payments and mortgage debt for the let properties can be ignored. The net profit/director's remuneration or dividends figure should be used as income.

For properties let abroad do not use or key any rental income derived from them onto our systems. Key the mortgage details onto our systems only where the mortgage is continuing (if the mortgage debt is in a foreign currency it should be converted to sterling). There is no requirement to obtain past payment history proof for foreign currency mortgages but normal requirements apply to mortgages in sterling secured on properties abroad.

I should add the OP must rent the property out first for at least one month before the income will be considered. They'll hae to find somewhere to live for a month or two. Possible renting elsewhere for 6 months first.

purplelila-2007

Owain_Moneysaver wrote: »

more or less unethical than using state benefits to buy beer and cigarettes?

I would say more unethical than cigarettes and booze as we all know buy to lets reduce the pool of available homes to buyers through sheer GREED.

Owain_Moneysaver

purplelila-2007 wrote: »

I would say more unethical than cigarettes and booze as we all know buy to lets reduce the pool of available homes to buyers through sheer GREED.

They do however increase the pool of available homes to tenants

antrobus

Owain_Moneysaver wrote: »

They do however increase the pool of available homes to tenants

It doesn't however increase the pool of available homes.

antrobus

crazyguy wrote: »

not only that is highly unethical to use state handouts to buy an extra property

To be fair OP's income consists of "income from tax credit, child maintenance and spouse maintenance", By 'tax credit' I assume they mean 'Child Tax Credits', with the bulk of their income coming from maintenance, as in money received from a former spouse.

I'd have thought that the sticky point would be the fact that OP's income was maintenance. Those with greater knowledge of the current state of play might be in a position to state what view a lender would take, but I'd have thought that they would place less value on such an income source.

Edit: And thinking about it; aren't mortgages generally advanced on a 25 year term, whilst maintenance typically comes to an end when the children hit 18? (And tax credits end when they're 16)

antrobus

laughsatcats wrote: »

I have found another house, which I would like to buy and then rent out my current home to pay the mortgage on this new property, increasing my portfolio.

That's not a tax efficient way of doing things.

You'd want to raise the mortgage on your old property in order to buy your new property, so that the interest paid on the mortgage was an allowable expense against your rental income.

If you can get a mortgage that is.

ebayqueen_2

Hi there

I think you are being greedy. Be happy with your lot. You don't need two houses especially in this financial climate. There are more than enough empty homes sitting around.

holly_hobby

antrobus wrote: »

Edit: And thinking about it; aren't mortgages generally advanced on a 25 year term, whilst maintenance typically comes to an end when the children hit 18? (And tax credits end when they're 16)

Or 21 if they enter university education.

A morgage may be held over any term between the lenders min and max allowances. If its interest only, as I would suspect the BTL mge will be effected, the duration of the mge term does not affect the actual monthly mge repayments.

So the OP could tailor the mge term to the anticipated maintenance term, of course they will need to also consider how they will redeem the mge at the date of redemption. (investment vehicle, sell the property, or alternative method).

Maintenance payments are made for the benefit of the children, so whether it could be argued that the rental income from the BTL (which is not the childrens main residence), will also directly benefit the children is down to the lender to accept or decline I suppose on an investment/semi commercial mge, as a BTL mge is

H

HappyMJ

antrobus wrote: »

To be fair OP's income consists of "income from tax credit, child maintenance and spouse maintenance", By 'tax credit' I assume they mean 'Child Tax Credits', with the bulk of their income coming from maintenance, as in money received from a former spouse.

I'd have thought that the sticky point would be the fact that OP's income was maintenance. Those with greater knowledge of the current state of play might be in a position to state what view a lender would take, but I'd have thought that they would place less value on such an income source.

Edit: And thinking about it; aren't mortgages generally advanced on a 25 year term, whilst maintenance typically comes to an end when the children hit 18? (And tax credits end when they're 16)

Probably as much value they put on my 6 month contract work. It's counted in full.

antrobus wrote: »

That's not a tax efficient way of doing things.

You'd want to raise the mortgage on your old property in order to buy your new property, so that the interest paid on the mortgage was an allowable expense against your rental income.

If you can get a mortgage that is.

I would assume as the OP doesn't work then the OP doesn't pay tax so it doesn't matter.

ebayqueen wrote: »

Hi there

I think you are being greedy. Be happy with your lot. You don't need two houses especially in this financial climate. There are more than enough empty homes sitting around.

That's nice. How about we make all landlords sell their properties. Then there would be no properties to rent and the council will have to house us all. My sister has more than 1 property and she rents them to people who can't get mortgages. That's what landlords are there for.